GVR says demand may be stabilizing after a rough first half of 2025
Metro Vancouver’s housing market saw a 9.8% drop in home sales year over year in June, but local realtors believe conditions are beginning to turn a corner after a sluggish start to the year.
Greater Vancouver Realtors (GVR) eported that residential sales came in at 2,181 last month, down from 2,418 in June 2024, and 25.8% below the 10-year seasonal average of 2,940 transactions.
Despite the year-over-year decline, the board says the monthly drop is only half the size of May’s, signaling an early-stage recovery.
“On a trended basis, signs are emerging that sales activity is rounding the corner after a challenging first half to the year,” said Andrew Lis, GVR’s director of economics and data analytics. “If this momentum continues, it may not be long before sales are up year-over-year, which would mark a shift toward a market with more demand than the unusually low demand we’ve seen so far this year.”
Inventory glut
There were 6,315 new listings added to the MLS in June, up 10.3% from the same month in 2024 and 12.7% above the 10-year average. The total inventory in the region rose to 17,561, marking a 23.8% increase over June 2024 and 43.7% higher than the 10-year seasonal average.
The overall sales-to-active listings ratio in June stood at 12.8%, indicating balanced market conditions. By segment, the ratio was 9.9% for detached homes, 16.9% for attached, and 13.9% for apartments.
According to GVR, ratios below 12% over sustained periods typically point to downward pressure on prices, while values tend to rise when the ratio exceeds 20%.
“As home sales regain their footing, inventory levels aren’t building as quickly as we’ve seen lately,” Lis said in the report. “Most market segments remain in balanced market conditions, which has generally kept prices trending sideways since the start of the year.
“With over 17,000 listings on the market right now, and with mortgage rates down around two per cent since last summer, buyers are enjoying some of the most favourable conditions seen in years.”
Signs of stabilization
The MLS Home Price Index composite benchmark price across all residential properties in Metro Vancouver stood at $1,173,100, a 2.8% decrease year over year, and down 0.3% from May 2025.
Despite some signs of stabilization, a Reuters poll forecasts a 2% decline in home prices in Vancouver and a 4% drop in Toronto for 2025. However, some experts believe the worst of the correction has already occurred.
Detached home sales totaled 657 units, a 5.3% decline from June 2024. The benchmark price fell to $1,994,500, down 3.2% year over year and 0.1% from May.
Apartment sales posted a larger drop, down 16.5% to 1,040 units, with a benchmark price of $748,400, representing a 3.2% decline from June 2024 and 1.2% from May.
However, attached home sales rose 3.7% year over year to 473 units. The benchmark price for townhomes was $1,103,900, down 3% annually and 0.3% monthly.
Vancouver condo market avoids Toronto-level slump – for now
While condo market conditions in Vancouver remain soft, the city is still outperforming Toronto, where oversupply is pushing the segment toward deeper corrections. Canada Mortgage and Housing Corporation (CMHC) flagged both Vancouver and Toronto as high-risk condo markets due to the significant slowdown in recent sales activity.
In Toronto, condo purchase activity has plunged by 75% since 2022, compared to a 37% decline in Vancouver, according to CMHC data. In April, over 2,000 new condo units in Vancouver were unsold and unoccupied — the highest level in more than a decade.
Even so, local industry professionals are not ringing alarm bells just yet.
“I think it’s a bit more difficult in Toronto than here,” Anthony Zhang, a mortgage broker with DLC Clear Trust Mortgages, said in a recent interview with Canadian Mortgage Professional. “I see there’s some challenges on the supply side, and people are struggling to sell. But I think the problem is getting even worse in Toronto.”
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